ESR acquires additional 27 acres in Chennai’s Oragadam to expand industrial park

Asia Pacific-focused real estate services and investment major ESR Group has acquired additional 27 acres of land to expand its industrial and logistics park in Chennai’s Oragadam. With this acquisition, the expanded area of ESR Oragadam Industrial & Logistics Park will now span 107 acres with a development potential of 2.5 million sq ft.

The Hong Kong Stock Exchange-listed company will be investing over Rs 276 crores for the construction and development, including land cost, of the additional space at this warehousing hub.

This latest expansion builds upon the delivery of ESR Oragadam’s first two phases, which counts many key occupiers including electromechanical solutions provider CUBIC, automotive research and development firm A2Mac1, and specialty labelling company CCL.

“ESR's expansion in Oragadam is a pivotal step in our support for Tamil Nadu's commitment to becoming a major industrial hub. This project transcends Grade A industrial buildings. By upgrading the supply chain with modern infrastructure, we are empowering a new era of advanced manufacturing and logistics for customers and communities. This expansion positions ESR as a contributor to Tamil Nadu's industrial transformation,” said Abhijit Malkani, CEO of ESR India.

According to him, integrating green building practices and sustainable infrastructure into the project’s design will enable businesses to operate efficiently while minimising their environmental impact.

The company’s additional investment will provide the opportunity for other major customers to establish their operations in the Oragadam-Sriperumbudur precinct, which has witnessed robust demand for Grade A industrial buildings in the past two years. In addition, sizable contiguous land parcels are scarce in Oragadam, making ESR's industrial and Logistics Park highly valuable.

ESR Oragadam is strategically located along State Highway 48, with multimodal connectivity by air, road, rail, and sea, as well as access to three major ports aiding international trade.

Tamil Nadu boasts the second-largest industrial base in the country with Oragadam being a leading manufacturing destination for automobile, auto ancillary, defense, electronics, renewable energy, and aerospace. This well-developed hub caters to a diverse range of customers, such as Daimler, Royal Enfield, Apollo Tyres and Komatsu, alongside leading manufacturers in electronics and engineering.

ESR Group is Asia-Pacific's leading new economy real asset manager and one of the largest listed real estate investment managers globally.

ESR India is a part of ESR Group, Asia-Pacific's leading real asset manager for new economy sectors like logistics, manufacturing, data centres, life sciences, infrastructure, and renewables. ESR India manages 22 industrial and logistics parks with a total assets under management of $1.7 billion and a gross floor area of 2.8 million sq meters as of December.

With an upsurge in the share of organised retail and e-commerce, supported by emerging sectors such as electric vehicles and semiconductors, the industrial and logistics asset class is expected to outperform other real estate and infrastructure asset classes in the medium term.

In India, a favourable regulatory environment, along with the government’s support through policy and reforms, has started to boost spending in infrastructure and in turn the overall demand for modern warehousing.